Yang, Sonmez, Bosworth and Fryxell (2009)
|Yang, Sonmez, Bosworth and Fryxell (2009)|
|Title:||Global Software Piracy: Searching for Further Explanations|
|Author(s):||Yang, D., Sonmez, M., Bosworth, D., Fryxell, G.|
|Citation:||Yang, D., Sonmez, M., Bosworth, D., & Fryxell, G. (2009). Global software piracy: Searching for further explanations. Journal of Business Ethics, 87(2), 269-283.|
|Link(s):||Definitive , Open Access|
|Key Related Studies:|
|About the Data|
|Data Description:||Piracy rates were compiled from raw data published by the International Planning Research Corporation and commissioned by the BSA. Data based on 26 different types of business application software. Gross National Income per capita was collected from the World Development Indicators.
Data on the cultural dimension of individualism were first compiled in 1973, but were updated in the 1990s. It includes 67 countries.
The final analysis included 59 countries that possess a complete set of data for all the variables (both individualism and ICT). The study unit is the national software piracy rate in a given year.
|Data Type:||Secondary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||Yes|
|Government or policy study?:||No|
|Time Period(s) of Collection:||
This paper identifies that Information and Communication Technology (ICT) has a negative effect on software piracy rates in addition to consolidating prior research that economic development and the cultural dimension of individualism also negatively affect piracy rates. Using data for 59 countries from 2000 to 2005, the findings show that economic well-being, individualism and technology development as measured by ICT expenditures explain between 70% and 82% of the variation in software piracy rates during this period. The research results provide important implications for policy makers and business practitioners to help reduce software piracy.
Main Results of the Study
- The economic well-being, individualism and ICT advancement all appear to significantly influence a nation’s rate of piracy. Their inverse relationships with piracy indicate that the increase of these three can bring down piracy. Consequently, the higher the standard of living, the higher the individualism, and the higher the level of ICT expenditure in an economy, the lower the piracy rate.
- Because the results were significant and consistent across the six years of the survey, they results are generalizable: ICT has a strong explanatory power to alleviate piracy. Accordingly, increases in ICT have a powerful effect to reducing a country’s piracy rate.
- This research confirms prior research that income per capita is the most influential factor on software piracy: a one thousand dollar increase in GNI per capita leads to the decrease in the piracy rate from between 0.6 and 1.01 percentage points. This variable alone explains between 59% and 74% of the variations in the rate of piracy across countries.
- The inclusion of individualism alongside GNI per capita increased the explanatory power of the model by between 4 and 10%: a one unit rise in IDV index results in at least 0.194 percentage point fall in the piracy rate. This confirms previous findings that culture is a complementary factor that impacts software piracy, but perhaps a secondary factor compared to GNI.
- A one percentage rise in ICT/GNI reduces the incidence of piracy by at least a 1.734 percentage point. The addition of this variable raises the explanatory power of the model by 4% and 6%.
Policy Implications as Stated By Author
- Economic improvement is important for bringing down the level of piracy. Thus, economic development amongst the less developed countries will be an important factor in decreasing the demand for pirated goods.
- Culture is important in handling piracy, and although culture is relatively inherent and deep-rooted in each country, governments can create a culture that recognizes the importance of IP through training and publicity to increase public respect for intellectual creations.
- Increases in ICT expenditures result in improvements to the quality of ICT infrastructure, raising the demand for legitimate software because of the need for other services supplied with them.
- Authentic firms can narrow the gap to attract certain groups of consumers through promotional activities and ting their IP with other products and services. These firms should educate consumers about the importance of IP and liase with government to increase public awareness.
Coverage of Study
|Level of aggregation:||Country|
|Period of material under study:||2000-2005|